Plan with confidence: How the new NDIS funding periods affect your supports

At Northcott, we are updating our Service Agreement to reflect recent changes to the National Disability Insurance Agency (NDIA) rules around funding periods. Here’s a guide to what’s changing, how it may affect you and what you need to know.

What’s happening?

From 19 May 2025, changes were introduced to how NDIS funding becomes available in your plan. Up until now, many participants received the full funding amount for their plan at the start of the plan period (often 12 months) and then had to manage that budget across the year.

Under the new approach, funding will be released in smaller instalments over time — so you’ll receive portions of your budget at set intervals rather than all upfront.

Important: The total amount of funding in your plan is not changing because of this — only when you can access it.

Who is affected, and when?

• These changes apply to new plans and reassessed plans from 19 May 2025 onward.
• If your plan was already in place before the change and you are not having a reassessment yet, these changes may not apply until your next review.
• The NDIA will talk with you about your circumstances and how this applies to your plan.

What exactly is a “funding period”?

• A “funding period” is the time‑interval in which a part of your funding becomes available and can be used. Here’s some definitions:
• Total funding amount: the full budget your plan provides over its lifetime.
• Funding component: a category or group of supports in your plan (for example Core supports, Capacity Building supports, Assistive Technology).
• Funding period: how often and when a portion of that component is released (for example every 3 months, monthly, up‑front) and how long that portion needs to last.

And what are “intervals”?

Most supports will default to a three‑monthly release of funds (i.e. every quarter) under the new system. Some supports will operate on other timelines:

• Monthly – often for intensive supports such as Supported Independent Living (SIL)
• Up‑front or longer period (for example 12 months) – for supports like one‑off Assistive Technology purchases or major home modifications.

What you need to know as a participant

Access & rollover of funds

• When your plan starts, your first instalment for that funding period becomes available.
• If you don’t spend all of the funds in a funding period, you can roll the unspent amount into the next period within that same plan.
• But: any funds unused at the end of the plan period do not carry over into your next plan.
• You cannot access or “borrow” funds from future funding periods

Spending and claims

• Your invoices and provider claims should align with the funding period in which the service was delivered.
• If you spend more than the amount available for the current period you will need to wait until the next period when more funds are released.

Keeping track of your funding period details
You can view your funding periods (dates, amounts) in your participant portal or by asking your plan manager or support coordinator.

Requesting changes
If the way your funding is structured isn’t working for you, you can request a plan variation, an internal review (within 3 months), or a plan reassessment if your needs change significantly.

Why is this change happening?

The NDIA say they found that having the full plan funding available upfront often made budgeting harder for participants — overspending early or not using supports evenly across the plan year.

By releasing funds in defined funding periods, it helps participants access supports consistently across the plan, reduces risk of running out of funds early, and offers more manageable budgeting.

How this affects your arrangement with Northcott

Because of these changes, Northcott is updating our Service Agreement to reflect the new funding period structure. Here’s how this may affect you when you use our supports and services:

• We will work with you to plan your yearly supports and align these to periodic funding allocations.
• We will work with you and your stakeholders to reduce the likelihood of overspending within our Service Agreement with you. To do this, we may ask you to share your overall NDIS budget, and any funding periods and amounts identified. Sharing this information will help us plan your services appropriately.

Questions?

If you have any questions or concerns about how funding periods affect your plan or our supports, please speak with your Northcott coordinator or contact our team. We’re here to help.

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